Recently laid off, but my severance letter basically excludes me from working at any KPMG client indefinitely. If I don’t sign can anyone confirm the following.
I won’t get severance pay and I can start claiming unemployment (NY) immediately.

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Sign and work for a client anyway. YOLO

likefunny

You cannot be precluded from earning a livelihood. KPMG clients wouldn’t be considered competitors. Restrictions against working for competitors can often be enforced for a period of time but that cannot be indefinite either.

likehelpful

OP can you send the actual language? My husband also an attorney and said it’d be hard to believe kpmg would put that in an agreement

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Recent IconRecent

Is that level of restriction even legal?

I honestly would look for professional advice on that.

likesmart

Certainly sounds unenforceable but I’m not a lawyer

That clause is probably not enforceable.

likesmart

Nor do I think it’s likely a big 4 is going to waste their time suing a laid off employee / a client over this.

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Here’s what you do....

Skip the lawyer, yes it’s legal, no it’s not really enforceable. Take the money if you need it, getting a job in this environment may take some time.

When you get a new job, and if KPMG actually cares, which they won’t - threaten to go to the press. Save everything, and tell them you’re calling the NY Post to explain to them that you were a) fired and then b) prohibited from working.

They’ll go away.

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Can’t imagine a big 4 chasing a laid off employee down by going after them (and now a client)

Get a job at a KPMG client and find a way to fire KPMG.

likesmart

Not legal in certain states. Consult with a lawyer. Which part of kpmg are you in?

likeuplifting

Agree. Consult with the lawyer before signing anything.

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You probably will not get your severance if you don’t sign. I would check NY but many states have protection from draconian non-completes. Very tough to legally enforce beyond 1-2 years

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Not working for any past or present client is very restrictive and probably not enforceable. Take the severance if you don't have another job lined up. If there's a risk and you end up joining a client, that client's legal team can advise you.

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Don’t sign, if there is a potential you could be hired by a client. You can always get unemployment in the interim.

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Likely not.

Check with a lawyer or do some googling at least.

Most non competes are unenforceable trash. Most likely the answer is: sign and just do whatever you want

The fact that this non compete is not limited by time or industry is hogwash

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I didn’t know Associate Director at Kpmg was a client facing title, and therefore no idea why severance would include any client/independence related topics.

likefunny

In Australia non competes that exclude you from earning a living are basically unenforceable, at best they may be allowed upto 3months... Considering they're laying you off it'd be very hard for them to enforce something so restrictive, go work for the client and yell "come at me bro"

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Law in a contract and law in practice aren't always the same. In this case, are they going to take you to court for accepting a job at KPMG client? Probably not unless it represents some kind of threat or loss to them.

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How much is your severance pay?

funny

Sign and apply lol

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Go to a lawyer - that’s some weird clauses they have

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This makes no sense.. for my team nearly half of our business comes from ex KPMG folks. In general the Firm wants you to go work at clients to allow us an in for more work. Granted you were just laid off so it's doubtful you will be throwing business our way once you land somewhere. Personally take the $, non competes are hardly ever enforced unless you go to a competitor and pull large clients away. Good luck OP!!!

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This doesn’t sound enforceable. Also seems highly unlikely they would go after a laid off employee who now works at a client, which will ultimately loop in the client. Would be dumb. Unless there are other circumstances you left out.

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What’s so special about a mobile app that took 3 years to make? I’m not trying to discredit or disrespect the work you’ve done there. I am on your side, I just think it’s ridiculous for Kpmg to slap this non compete to work for a client on you, esp. if their “proprietary” tech is a mobile app.

7 weeks pay + $2k

You can file for unemployment even if you get severance.

That clause is absurd; ask for it to be removed. Maybe ask to add a timeframe like for the next 12 months or something.

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